Merkel calls for European credit rating agency

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German chancellor Angela Merkel called Sunday for the creation of a European credit rating agency, on the back of recent discontent over the downgrading of some EU economies.

"It is important in the medium term that Europe also has a ratings agency,"

she said in an interview with public broadcaster ARD.

"The Chinese now have a ratings agency," the chancellor said - adding the new body should be created by the "European economy" and not by states.

There had not, until now, been much interest in creating such an agency, but there was a void, Merkel continued.

"I would really welcome it (if) the European economy manages to create a ratings agency," she added.

The European Commission has in recent days roundly criticised the world's three leading credit ratings agencies, questioning the timing of their debt downgrades, which influence prices and interest rates in the sovereign bond market.